Open Free Account


FED interest rate decision 2nd May 2018


U.S Federal Reserve (FED) interest rate decision

The U.S. Federal Reserve's Federal Open Market Committee (FOMC) will announce whether the interest rates in the U.S. will increase or remain unchanged tonight at 20:00 South African time.

The FOMC Statement:

The Federal Open Market Committee (FOMC) statement is used to communicate with investors about monetary policy. It also contains the outcome on the vote on interest rates, the economic outlook and most importantly offers clues on the outcome of future rate decisions.

-> A more dovish than expected statement could be taken as bearish for the Dollar (USD)

-> A more hawkish than expected statement could be taken as bullish for the Dollar (USD).

Market Consensus: 

The consensus in the market is that the interest rate will remain unchanged this time around at 1.75% but two additional increases in the U.S. interest rate are expected sometime this year.

Trading Strategies:

The decision will be watched closely by traders as an increase in interest rates will be very positive (bullish) for the Dollar (USD) so take a look at the following:

Major Forex pairs:


And the inverse is applicable where there is an an increase in interest rates then that will have a  negative effect on equities so take a look at the following:

Major Indices:

  • S&P 500
  • Wall Street 30
  • Nasdaq
  • Russell 2000



gt247 Partnership Affiliate Program


Disclaimer: Any opinions, news, research, analyses, prices, or other information contained within this research is provided as general market commentary, and does not constitute investment advice. GT247.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The content contained within is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions.